Parental help ‘key for first-time buyers’
Parents are giving increasingly large amounts of money to their children in order to help them buy a first home, according to the findings of a new survey.
Research conducted by Alliance & Leicester showed that parents are now paying out an average of £21,314 to help their children purchase a house.
The figure has increased by £3,637 in the past 12 months, as increasing house prices, stamp duty and student debt make it increasingly difficult for young adults to afford both a deposit and mortgage repayments.
Stephen Leonard, director of mortgages at Alliance & Leicester, said the results highlighted how important parental help had become to first-time buyers.
"Extra funding from parents can often make the difference between renting or being able to get on to that first rung of the property ladder," he said.
Meanwhile, a new report by Halifax has revealed that first-time buyers find it difficult to purchase property in rural areas and account for just 17 per cent of buyers in the countryside, compared to 33 per cent in urban areas.
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